The exchange Gate.io has lost two hundred and seventy-one thousand dollars to the attackers who were successful in a fifty-one percent (51%) gain attack on the Ethereum blockchain.

The attackers were able to extract fifty-four thousand and two hundred Ethereum classic coins (ETC). The attackers gain a fifty-one percent (51%) control of the blockchain that is required to rollback transaction and extracts money out of these transfers.

The four-hour-long attack came after midnight on January 7 (UTC) and continued till after 4:00 am. Gate.io was able to track down the transfer’s initially but once the attackers gained fifty-one percent control of the network all transaction were validated and according to Gate.io “about 40k” ETC were extracted in the attack.

However, acting honorably, Gate.io is taking one for the customers with the promises that the exchange would refund all customers who lost their currency during the attack. The exchange also sent a cross-exchange request to seize all transaction to the addresses identified as the criminal addresses.

Ethereum blockchain is currently governed by Etheremine and SparkPool_3 for fifty one percent (51%) of the network. The bad news in such an attack would be the fact that the same network used to power the blockchain becomes an accomplice of the criminal act.

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About The Author

Having been involved in the Digital Marketing industry since 2005, Dan has always been focused on performance. With a core background in research, his aim is to understand the customer behind the technology, in order to better cater for their needs, and in turn improve performance for clients. Crypto enthusiast and a true blockchain believer.